Insurance underwriting is fundamentally a data-driven business. As the world becomes increasingly interconnected and generates far more data than any individual human can process, computers and AI have emerged to support data analysis and decision-making. Quantum computing has the potential to transform how data is used in underwriting and beyond in the insurance industry.
Although the full capabilities of quantum computing are still years away, insurers need to take the quantum future seriously for their current strategies. The cloud is the foundation for successful quantum computing applications. To move forward with quantum computing, carriers must increase cloud adoption and optimize how they leverage the cloud to collect data.
Why insurance companies should consider the potential of quantum computing
Over the past few years, Accenture has followed the trajectory of innovation in quantum computing.latest insights 2022 Technology Vision Report We are clearly entering a new era of digital transformation, where unprecedented computing power drives innovation and economic success.
Quantum computing can be used to solve problems that are too complex for classical computers. In this context, complexity refers to an almost unimaginably large number of variables that interact in complex ways. To use the report’s example, in logistics, he could take 20 trillion possible routes for one trip with 16 stopovers. Classical computers have to consider all possibilities to find the most efficient route, which can take even the fastest computers decades to find.
As innovations in quantum computing become more commercially viable than just academic environments, working with large datasets will become more achievable for the average company.
Accenture predicts that 80% of workloads will move to the cloud over the next few years. This means more opportunities to collect data generated by workflows and actions that occur across the digital world. Quantum computing capabilities enable companies to extract insights from this ever-increasing amount of data and increase business value.
To quote Technology Vision, “Companies should look for white space opportunities where more specialized or more powerful computing can have a broader impact on their industry.” As we move into a world of augmented reality, IoT wearables, and computer vision, insurers that take the initiative to increase their computing resources could be at an advantage. In a world where data has never been easier to obtain, the amount and complexity of data continues to grow. increase.
Get the most out of your data
Quantum computing is an extension of the cloud that has the potential to add even more value to what you’re already doing in the cloud.In one of my recent posts, I talked a little bit about How wearables and IoT technology bring more data to insurers via the cloud. Currently, AI is supporting insurance companies through the process of collecting, analyzing, and understanding much of the available data. But as data about individual customers continues to grow, quantum computing can help insurers discover larger patterns and make better predictions about where the market is headed.
Quantum computing could also help insurance companies assess risks on a larger scale. The core of risk assessment is understanding how likely things are to go wrong. Quantum computing is completely possible in the insurance industry. Rebuild your underwriting process. Quantum computing is already being used by Goldman Sachs (in partnership with quantum computing companies IonQ and QC Ware) to assess risks in the financial industry for sales forecasting and financial market behavior. . Just as a quantum computer can quickly determine the most efficient transportation route among her 20 trillion options, it could also determine the probability that an individual will have a car accident at a particular intersection.
An important application of quantum computing is predictive risk modeling regarding the impacts of climate change. Quantum computing can handle the complex intersecting factors that contribute to assessing risk associated with environmental events such as wildfires and tornadoes. Unprecedented natural disasters may continue to impact our assets and health, and quantum computing can reduce the unknown and help carriers understand what the future holds. Improved scenario modeling capabilities will enable underwriters to more accurately deliver the coverage their customers need while driving sales growth even as the climate becomes more volatile.
As we move closer to a world where quantum computing becomes part of every company’s strategy, today’s insurance companies need to assess their current technical debt. Change is coming fast. As important achievements in quantum computing become apparent, the gap between early adopters and laggards will widen rapidly.
Taking the first step towards realizing quantum computing
One of the major hurdles outlined in the Technology Vision is the widening gap between technology innovation and the skills needed to operate that technology. Leaders in all industries need to think about how to train and hire the talent needed to run their organizations in the future, including quantum computing. A study cited in the UK’s Technology Vision found that there is an acute shortage of large-scale computing professionals. Insurers can create demand for these roles to motivate job seekers and focus on upskilling current employees.
Insurers also need to think about whether they have the right decision-makers within their company. Do you currently have people on your team who can think through the challenges and shaping opportunities ahead? Powerful strategies for dealing with chaos• It is important to have a diverse team engaged in proactive planning. Bringing different perspectives and backgrounds to the table allows for more nuanced and holistic problem solving.
In addition to recruiting the right talent to support efforts related to quantum computing, forging partnerships will help leaders deploy scalable resources at a more reasonable cost in terms of human, technical, and financial resources. Helps you achieve results. The Technology Vision report recommends joining consortiums that advance quantum computing capabilities across industries.
In the healthcare field, Nvidia, AstraZenecaand GlaxoSmithKline (GSK) Around Cambridge-1, Britain’s most powerful supercomputer has produced generative AI models of chemical structures. It has helped bring new drugs to market much faster than before using predictive modeling.
Insurance industry leaders are gradually joining the arms race for quantum supremacy.German multinational reinsurance company munich re one of the founding members of this country Quantum Technology and Application Consortium. In the United States, Quantum Economic Development Consortium (QED-C) is one of the leading consortiums working on quantum innovation, and its members currently include companies such as AT&T, Wells Fargo, Boeing, and Honeywell. There is ample opportunity for insurance companies to be the first in the industry to participate in quantum computing research and development.
From cloud to quantum
Quantum computing will change the way data is used, adding exponential value to data already collected through cloud-based technologies. The digital world will become increasingly intertwined with physical reality. As we innovate the human experience, the amount of valuable data organizations have access to will continue to grow. To take full advantage of this data explosion, insurance companies must take quantum computing seriously as part of their overall cloud and data strategy.
We’d like to talk to you about how to make the most of your cloud strategy for the future of quantum computing. Please contact me.
